When prices are outside the
value areas, say above and remaining there, initiators are active and a new
value area will be developing. I do not trade the developing
value area but i will tend to look for long trades. On a rejection back into the
value areas, i look for the 80% rule for prices to test the lower
value area or at least test the
POC. Market Profile is not an indicator tool like MACd etc. It gives you clues as to the where the market may be going, it gives you strong S/R areas and potential trading ranges when inside the V/A and clues you in to whether the trading day will be a trend or non trending day. It most importantly tells you whether the market is in or out of balance, the further price is away from the V/A the more out of balance the market is and other timeframe players are in control. Inside the V/A locals are in control and market is more in balance. On those days I'll look more to scalp in between the lower and upper V/A with
POC as my taking of partial profits. Been working well for me as part of my trading plan.